On Tuesday, AutoZone, Inc. (NYSE:AZO) reported second-quarter earnings and sales that fell short of Wall Street expectations.
AutoZone generates most of its revenue by selling auto parts and accessories to Do-It-Yourself (DIY) customers and professional mechanics through its retail stores and online platforms.
The company posted quarterly earnings of $27.63 per share, narrowly missing estimates of $27.76, while revenue rose 8.1% year over year to $4.27 billion, coming in just below expectations of $4.31 billion.
Comparable Sales Growth and Margin Pressure
AutoZone’s quarterly total company same-store sales rose 5.2%. Its domestic same-store sales increased 3.4%, while the international same-store sales rose 17.1%.
AutoZone’s constant-currency same-store sales for its international unit are up 2.5%.
Gross margin was 52.5%, down 137 basis points year-over-year. The decline reflects a 138 bps non-cash …